Why Aussie Forex Traders are Saying “No” to Cryptocurrency

A couple of short years back, no one other than shady programmers working on the Dark Web had known about digital forms of money. Today, everyone wants a piece of bitcoin and in the first half of 2017, the cryptocurrency market cap grew by a staggering 800%. Not surprisingly, Australians have already noticed the recent shift of interest towards cryptocurrencies.

What are Cryptocurrencies?

Cryptocurrencies are the future. Devised as a peer-to-peer digital cash system by Satoshi Nakamoto, cryptocurrencies use a medium of exchange to create monetary units and verify the virtual transfer of funds. Cryptocurrencies do not exist physically. They cannot be touched or felt. They only exist within the network. Of course, it is more complex than that, but the real point of interest here is that cryptocurrencies have become mainstream in a way that nobody expected back in 2009.

The Main Cryptocurrencies

Bitcoin is maybe the best-known cryptographic money, with a market top of $661.2 billion, yet there are numerous others. Litecoin was propelled in 2011; its market top is at present around $17.8 billion. Next, most popular cryptocurrency is Ethereum. Ethereum has a market cap of $108.3 billion. The pace at which its value is rising, we won’t be surprised if it surpasses the bitcoin. Other cryptocurrencies include Ripple, which many investors see as a potential alternative to bitcoin, Monero, Neo, Iota, Cardano, and Bitcoin Cash.

Before a year ago’s over, it was winding up progressively clear that digital forms of money have entered the standard. Switch on the radio or TV and Bitcoin was being specified practically all around. You don’t even need to be a seasoned forex trader to buy cryptocurrency these days. Any standard Australian can purchase bitcoin, Ethereum or Monero from a trade. CoinSpot is a standout amongst other known in Australia, however there are others. All you need is some ID and you can exchange your AUD for a cryptocurrency of your choice. Some other exchanges that are available in Australia are Bitfinex, Shapeshift, Binance, and Coinbase.

ATO Clamps Down on Cryptocurrency Trading

In any case, regardless of the prominence of digital forms of money, there are dark mists not too far off and numerous financial specialists are making a stride once more from bitcoin and different altcoins. For one thing, the Australian Tax Office (ATO) is establishing a taxforce to clamp down on cryptocurrency trading. The cost of bitcoin rose 20-crease in 2017, quickly touching the $20,000 stamp in December 2017, such a significant number of speculators have made a fortune on their digital currency property.

Then ATO is keen to make sure investors are paying their taxes on any gains made on the cryptocurrency markets. Australian banks will help assess monitors to mine client accounts, so they can track vast exchanges and take after the cash trail. Indeed, some investors reported at the end of 2017 that their bank accounts had been frozen pending further investigation. It’s an unmistakable sign that the Australian monetary experts are considering digital forms of money important, and with real banks as yet reeling from illegal tax avoidance examinations, most will work intimately with the ATO to identify tax evaders.

Why Smart Traders are Leery of Cryptocurrencies

There are other signs that cryptocurrency trading could soon hit a few speed bumps. The South Korean government is clamping down on cryptocurrency trading.

“There are great concerns regarding virtual currencies and [the] Justice Ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” Park Sang-ki, Justice Minister in South Korea, told the press.

News of the clampdown sent the digital currency showcase into a spiral and bitcoin costs took a sharp tumble as merchants hysterically sold off their bitcoin coastal and seaward.

JP Morgan boss, Jamie Dimon, has also gone on record as saying: “Bitcoin is a fraud”. He made the controversial claim that cryptocurrency is only fit to be used by drug dealers, murderers and anyone living in North Korea. He included that anybody found exchanging digital currency at JP Morgan would be let go instantly. Bitcoin esteem fell by 6% in the wake of his remarks.

Dimon is not alone. Many seasoned forex traders are of the same mind. Most predict the bitcoin bubble will burst at some point. It may not happen overnight, but sooner or later, the cryptocurrency market will collapse in spectacular fashion. So, if you want to make short-term gains, by all means, invest in bitcoin, Ethereum or Ripple, but if you can’t afford to lose your investment, stick to regular forex pairs.

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Andy Robert

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